AstraZeneca Profits Soar 40% as Cancer Drug Demand Drives Record Results
Pharmaceutical heavyweight AstraZeneca has announced a remarkable 40% surge in annual profits, with the FTSE 100 company posting pre-tax earnings of $12.4 billion (£9.06 billion) for 2025. This substantial increase from $8.69 billion (£6.35 billion) in 2024 has been propelled by robust demand for the company's oncology treatments and strategic market expansions.
Financial Performance and Strategic Growth
The company's impressive financial results were particularly strong in the fourth quarter, where profits surged 49% on a constant currency basis. Operating profits rose 36% to $13.74 billion (£10.04 billion), while revenues increased 8% to $58.74 billion (£42.93 billion) when currency fluctuations are excluded.
Looking ahead, AstraZeneca has projected that revenues will climb by a mid-to-high single-digit percentage in 2026, with underlying earnings per share anticipated to grow by a low double-digit percentage. The Anglo-Swedish pharmaceutical group is strategically positioning itself for continued growth through several key initiatives:
- Sustained focus on oncology treatments with strong market demand
- Expansion into the US and Chinese pharmaceutical markets
- Investment in increasingly sought-after weight-loss therapies
- Development of new medicines through strategic partnerships
Strategic Partnerships and Market Positioning
Chief executive Pascal Soriot has reaffirmed ambitious targets of achieving $80 billion (£58.47 billion) in annual sales by 2030 through new medicines and strategic investments. The company is poised to announce results from as many as 20 advanced clinical trials this year, with more than 100 Phase 3 studies currently ongoing.
"We have more than 100 Phase 3 studies ongoing, including a substantial and growing number of trials of our transformative technologies which have the potential to revolutionise outcomes for patients and drive our growth well beyond 2030," Mr Soriot stated, adding that "the momentum across our company is continuing in 2026."
Recently, the group announced a significant £13.52 billion ($18.5 billion) partnership with China's CSPC Pharmaceutical Group to accelerate the development of experimental weight loss and diabetes drugs. This strategic move allows AstraZeneca to increase its investment in the rapidly expanding market for weight loss and diabetes drugs, previously dominated by blockbuster brands Mounjaro, Ozempic and Wegovy.
Market Response and Future Outlook
The annual results were released after AstraZeneca began trading shares on the NYSE earlier this month, while maintaining its listings on the London Stock Exchange and Nasdaq Stockholm. Shares in AstraZeneca rose 1% in Tuesday morning trading, with the stock having increased 28% over the past six months.
Chris Beauchamp, chief market analyst at IG, commented: "The numbers this morning continue to show how AstraZeneca seems to have its house in order when it comes to its drug pipeline. The outlook and recent performance more than justifies the recent surge in the share price which has finally seen it break higher after years of sideways trading."
AstraZeneca, which has key UK bases in Macclesfield and Cambridge, generates nearly half of its revenues in the US and aims to further expand in the world's largest drugs market. Last July, the company announced plans for around £36.55 billion ($50 billion) investment in the company by 2030, while several joint ventures in China are targeting the world's second largest economy.
These strategic moves are particularly important as they help cushion the impact from losing patent protection on Farxiga, the company's blockbuster diabetes medication, which saw sales growth of just 2% on a constant currency basis during the fourth quarter.
